Intellicheck, Inc. (NASDAQ:IDN) Q4 2022 Earnings Call Transcript

Bryan Lewis: I don’t think Mike, we’ve got any major renewals. Actually financial services company number four blew through, remember they made about, I don’t know, two and a quarter, maybe just shy, two and a half years ago a commitment to what they were going to buy, thinking it would last them three years. That would’ve brought it into, kind of next year I think. They run through that. So I know Chris is working on that. That’s probably the only other large one. Pretty much all the big retailers who pay us direct, put in two to three year contracts last year number two renewed, obviously number three renewed for three years. So most of the big guys are locked up for a while.

Mike Grondahl: Got it. And then, you talked about pipeline and sales activity. Have you added any people to the sales team in the last six months or is that team just starting to gel, which you had sort of redone a while ago?

Bryan Lewis: So I think, yeah, we certainly added some people particularly into account management, which also was something that kind of really mattered to me. And I’ve been out now last week, this week doing quarterly business reviews with a lot of our top clients. And given how thin we were spread, we weren’t communicating with them enough. But sitting down with them, all the players in a room for anywhere from one to two hours and explaining to them what we do at the platform, what are the other signals they can get. It’s really been fun to see their eyes light up and they’re like, we need that. How do we make sure that we’re on the new API so we can get all these things? So yeah, we did add some people in account management.

I think that could be sort of the sleeper sale of growth for us with these big accounts, while the sales team is going through what they need to, I’m happy that there are enough deals from 10,000 to 50,000 that they could be closing those while at the same time they’re working these long cycle financial services, which at the end of the day can be significant.

Mike Grondahl: Got it. And, and then, SaaS revenue quarter to quarter grew like 21% or like roughly $600,000. Is most of that from existing, are you able to give us a little bit of flavour, how much of that is coming from, new call it ’22 customers?

Bryan Lewis: I’d say it’s probably if I, just kind of ballparking it and again, this is one of the reasons I’m happy Jeff is on board. We’re getting this stuff in a much easier fashion that we can begin to report on. But if I look at sort of where our existing clients were, you look at number two didn’t bring just because their freeze didn’t bring anybody on really past the first quarter of last year. So they were kind of relatively flat other than sort of some seasonality. The rest, you’d had continued expanded use cases with number four. Number three, not so much expanded use cases in Q4 because they had completely implemented the retail banks in Q3. So a little bit, but not much. I think the rest of it was the fact that we’ve added a lot of automotive dealers and, some venues that hold big concerts which spend money.

So, it’s a mix of things. I’d say maybe 50-50, but certainly with what I see going on with the sales team, I expect that metric to change more in terms of new business than existing.

Mike Grondahl: Got it. And then, hey, just lastly, did you give the transaction growth year-over-year or do you plan on giving that at any point in ’23?

Bryan Lewis: I didn’t, but it certainly could be something that we talk about on the next call, which is coming up right quick.

Mike Grondahl: Got it. Just trying to figure out if that’s a driver to track or if you’re going to share that going forward. So,

Bryan Lewis: And it’s really, yes, and I’d say, and if we do, do it, it would make sense certainly to break it out, age restricted versus non-age restricted because there really are very different markets.

Mike Grondahl: Fair enough. Hey, thanks a lot.